Singapore — Mining giant Rio Tinto's production from its remaining thermal coal assets slid in the April-June quarter, while it remains on track to hit its 2018 production guidance, the company said Tuesday in its quarterly results. Rio's share of thermal coal production from its assets stood at 1.01 million mt in the June quarter, which is down 1% year on year, and 10% from the January-March period, the results showed.
The figures excluded production from its Coal & Allied assets following its divestment in the second half of last year.
The miner's only remaining coal-producing mines are the Queensland, Australia-based Hail Creek and Kestrel mines.
In March, the company had entered into binding agreements to sell these mines. It has agreed to sell its entire 82% stake in Hail Creek to Glencore, as well as a 72.1% interest in the Valeria coal development in Queensland, for $1.7 billion.
It has also entered into an agreement with a consortium comprising private equity manager EMR Capital and PT Adaro Energy, an Indonesia-listed coal company, for the sale of its 80% interest in Kestrel for $2.25 billion.
Rio said Tuesday that these sales are scheduled to be completed during the second half of 2018, subject to the satisfaction of completion conditions.
The company's thermal coal production guidance for 2018 remains unchanged at 3.8 million mt-4.5 million mt, subject to the completion of the asset sales.
